Rising Home Prices Associated with Job Growth

A direct correlation has been drawn between job growth and rising home prices. A tight housing supply, in association with more career opportunities, has contributed to rising home prices at a rate that hasn’t been seen since 2006. According to government data, February witnessed three cities (Phoenix, San Francisco and Las Vegas) demonstrate an increased propensity for year-over-year home price growth while their job growth surpassed the national average.

The Standard & Poor’s Case-Shiller index of the 20 leading cities indicates that home prices received a modest 9.3 percent increase in February from the same time a year ago. Our current standing represents a 1.2 percent increase from January on a seasonally adjusted basis.

Rising home prices were most relevant in the following cities:

Phoenix (up almost 23%)

San Francisco (up almost 19%)

Las Vegas (up almost 18%)

By comparison, New York represents the city with the least growth, with a 1.9 percent annual gain.

Rising home prices continue to reveal modest increases across all 20 cities that were involved in the Case-Shiller Home Price Index. According to David M. Blitzer, Chairman of the Index Committee at S&P Dow Jones Indices, “the 10 and 20 City Composites recorded their highest annual growth rates since May 2006; seasonally adjusted monthly data show all 20 cities saw higher prices for two months in a row – the last time that happened was in early 2005.”

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